Investors must heed filings
Investors are urged to place greater importance on information filings with the Stock Exchange of Thailand (SET) and other relevant sources before making any investment decision, says the Securities and Exchange Commission (SEC).
“Investors should study securities information before making their investment decisions. For an initial public offering (IPO) stock, investors can obtain a prospectus of securities issuers or brokerage firms,” said SEC assistant secretary-general Prakit Boonyatthiti.
“After investors have bought IPO shares, they should follow news about the stock such as SET filings, annual reports or newspaper accounts, as well as attending shareholders’ meetings and voting to protect their benefits.”
From prospectuses, investors are encouraged to read the background summary of securities offering, business performance, and financial condition; risk factors inducing adverse effects to a listed company’s business; connected transactions showing whether the company is reliant on people with potential conflicts and how the company undertakes any measure to prevent conflict of interest and transfer of benefit; and a description and analysis of financial status and business performance to learn about changes.
“The primary function of the SEC in IPO licensing is to ensure that funders have a corporate governance structure, transparent administration and internal control, as well as adequate information disclosure,” Mr Prakit said.
“Regarding [companies’] long-term ability to do business, investors must study the information to support their own investment decisions. They can read analysis or use professional investment advice.”
In related news, the SEC is still investigating whether Pace Development Plc (PACE) has recognised revenue and net profit for selling two subsidiary companies and correctly booked it on its balance sheet.
Pace’s business remains risky because of the uncertainty of the MahaNakhon project, said Prakid Punyashthiti, deputy secretary–general of the SEC.